CHRISTMAS 2021 SPECIAL: DO YOU BELIEVE IN SANTA CLAUS RALLY? %

Dear readers, a Merry Christmas to You and Your Family on this Christmas Day! Today, being Christmas, I thought that I should write a post that is related to Christmas (as well as investing). And linking the two, is none other than Santa Claus Rally and the question to you is whether you believe in the Santa Claus Rally?

First, a definition of Santa Claus Rally. The Rally refers to the tendency for the stock market to rally over the last week of December into the new year. That means to say, investors would be focusing on the stock performance next week, yes, the final week of December to see whether there is indeed a Santa Claus Rally into the new year.

What is often unsure is to how much the rally for the last week of December to be considered a Santa Claus Rally? If by chance, the Straits Times Index (STI) heads north next week by 1% to 2%, how can we know that the increase in the STI is caused by the Santa Claus Rally effect rather than by other reasons outside of this Rally?

I would think nothing more of the Santa Claus Rally rather than another common belief of the investing fraternity like “Sell in May and Go Away” and hence I don’t think too much of this Santa Claus Rally at all.

I would rather think one of the Christmas Gift investors can give themselves this year is to really save or continue to save up some capital to deploy in Year 2022, which some commentators including myself would be a more volatile year than Year 2021.

Merry Christmas to You and Family once again!

That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!

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